>> announcer: live from new york where business never sleeps, this is "squawk box." good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with andrew ross sork kick and scott walker. star gazers are rejoicing. they got to see a supermoon lunar eclipse and a blood moon. it looked bigger and brighter than also. there was also a lunar eclipse which happens when the earth lines up with the sun and the moon. it gets the blood moon title because the moon has a copieper color. if you missed it, you can see it again in 2033. it was only blood red for a while. guys, i fell asleep at 8:30. woke up at 12:15. by 12:15 it was almost white

again. >> you woke up at 12:15. >> did you go back to sleep? >> i usually go right back to sleep. i was like, oh, my gosh, it's 12:15. i can catch the end of it. i ran downstairs and ran outside. i didn't catch the end of it. i tried. 8:30, i'm in bed. >> i missed the whole thing. >> me, too. >> i missed the whole thing. >> it's the hours. also speaking of all things, space, a big announcement coming from nasa. the agency tweeting this hint. mars mystery solved? find out at 11:30 a.m. eastern on nasa tv. before you get excited about this, i don't think they're talking about mash shartians. let's see what's happening with the u.s. equity futures this morning. you'll see at least at this point, it looks like, drumroll please, markets are in the red. the dow futures are indicated down by 72 points below fair

value. s&p futures off by 10 and the nasdaq off by 21. >> danger warning from carl icahn in a new video set for release tomorrow. in the video produced by mr. icahn himself, he says the low interest rates have caused bubbles in art, interest rates and high yield bonds. the fallout for the market could be dramatic. >> it's like giving somebody medicine and this medicine is being given, given, given, we don't know what's going to happen. you don't know how bad the end of this will be. you do know when you did it a few years ago it caused catastrophe in '08. where do you draw the line here? >> in a separate telephone interview surrounding the video's release mr. icahn told me he's, quote, more hedged now than i have been in years. stocks could go down a lot more. the fed may have backed itself into a corner. they should have absolutely

raised rates six months ago. mr. icahn also says donald trump is the outsider washington needs. the video's full release is tomorrow morning. >> how long has he been negative on the markets? >> he's been negative for a while. delivering alpha -- >> almost a year now. >> -- he talked about the bubble and high yield bonds as he went after black rock, among others. in that conversation. he's been -- he's been quite negative for a while. >> but i guess his points is he's even more hedge than he's ever been. >> you get the feeling that he's even more negative than he has been but, really, it's sort of -- it's repeating the warning signs that he's seen for many, many months. >> i thought he was a great micro guy, meaning amazing stock picker, gutt out of -- like nobody else. is he a macro guy though? have his macro calls about the market broadly speaking over the years been right? >> i think more recently the call on high yield has been more

right than wrong. you would think he's been in the business of doing this for so long that at least at many points throughout this storied career that he's made macro calls before and they've probably been more right than wrong. even so, yes. >> what do you think this is about, like making a movie? making your own video for youtube? >> this is about carl. >> it's about controlling the message. >> right? i mean, he -- he has said the things that he would -- i would presume he says in the video once we get the full view of it tomorrow, but this is carl on a grand scale. he likes a big production. he likes to be loud. he likes for everybody to hear what he has to say and heed his warnings. maybe this is his new attempt to do that. >> by the way, he's seeing his buddy donald trump doing quite well by getting his message out. he's on board with that. he may be taking some hints from that as well. >> perhaps, perhaps. >> there is a story in the "wall street journal" today that

points out what's been happening with the u.s. bonds. the spread between corporate and treasuries. maybe that plays into what he's talking about, too. >> yeah, look. i think carl icahn, jeffrey gundlock, how many well known and famed investors have come on this program and said they're concerned about high yield and some of the issues in the market. the list is long and distinguished. it's not like mr. icahn is the only one who has said that. but the megaphone with the new video, perhaps the message goes louder. in corporate news this morning, reports say that talks between vodafone and liberty global have broken down as the two sides couldn't agree on asset values. future talks are said to still be possible. royal dutch shell says it will stop its exploration in alaska. this coming after it failed to find enough oil in the region. the company will take a

writedown on all of that work, $4.1 billion. comcast acquiring majority steak in universal japan. the global theme park strategy. full disclosure, comcast is the owner of the nbc universal studios. >> these parks have been very successful, japan park, too. >> in particular. >> i think that's why they want to bring it back into the fold. >> and you have more control. >> right. let's talk about what else is happening here in new york this week. global leaders are meeting for the u.n. general assembly. michelle cabrera is there. this is another week and another series of traffic warnings for anybody who wants to move around manhattan. >> reporter: and it's worse this year than ever, becky. it's the 70th annual meeting. it's not clear if it's a big

anniversary year or because there are so many problems in the world but the turnout of leaders and autocrats. let's show you who's up before 1:00 p.m. dilma rousseff, president xi, putin, hassan rouhani from iran will speak. he'll leave early to go back to iran and the first ceremony marking the deaths of many of the iranians who suffered delgts in the stampede at the hajj. we'll hear from raul castro first time addressing the u.n. assembly as the leader of cuba. he hasn't been in the united states since 1959. he's never been to new york. we think he's going to talk less than his brother did back in 1960. his brother fidel holds the record of 4 1/2 hours. he spoke about a prequel meeting.

he demanded that the united states end the embargo completely, not diplomatic relations not enough for him. president xi, it will be tough for him to make news. we've heard so much from him whether it was seattle or washington. he spoke over the weekend. topic one here at the u.n. is definitely the situation with isis and what to do collectively in the world if anything at this point. back to you. >> michelle, thank you very much. obviously a lot of news is going to be happening this morning and throughout the day. michelle will be there bringing us updates. in the meantime, why don't we get a check on the markets. the futures, we showed you this. last week the dow was off by .4 of a percent. this morning you see the dow opening down by another 65 points. nasdaq down last week. it's indicated to open down 18 points with the s&p futures down close to 10.

the early trading in europe, there are some red arrows there as well. looks like the biggest declines among the major markets coming from the cac in france which was down by more than 1.4%, dax is down as well as the market in italy. the ftse 100 down by 1.2%. overnight in asia, take a look at how the markets closed there. the nikkei was down by 1.3%. shanghai composite and hang seng closed slightly higher. check out oil prices which did gain. closing at 45.70. see wti is down. check out what's been happening in the bond market. at this point it looks like the yield is sitting at 2.139%. the yields have been under pressure since the fed decided not to raise rates at the last meeting last week. let's take a look at what's happening with the dollar. was that two weeks ago? the week before last. a week and a half sings the fed met. the currency markets, the dollar

is up against the euro at 1.1182. gold prices, look like they are down by about $1116789,134.30 j markets looking ahead to friday's job report. more signals on whether the ee l jobs market is down. hans, welcome. good to see you. did you get more clarity from the fed chair late last week? >> no. no. not at all. i was in the camp that thought the fed should get on with it and was disappointed that they didn't do it. >> are they going to do it this year? >> i guess. it's hard to know the fed's mind when apparently they don't know their mind themselves. should they get on? absolutely. the numbers we've seen since the announcement where nothing was done, gdp, tick under 4 beers

percent. real estate, housing at 5.3 million units. auto sales still up 16, 17 million units. so this is an economy that doesn't need policy. >> what about the stock market? does the stock market need it or not? >> that's where things get interesting, right. you have a picture of the economy that actually is pretty good overall. if you look at the equity market, they're losing a bit. the third quarter, what you find is a market that -- one that's trading at 17 times earnings. should have a revenue profile, earnings profile that is a lot better than what the aggregate numbers are suggesting. then i think that's where some of this market weakness is coming from. >> do we just have a much more international market or much more international company reflected in our markets? >> we do. that's a good point. if you subtract out those

companies that get more than 50% of their revenues from outside the u.s., the picture looks very different than the aggregate. the same can be said if you subtract them from those companies that are -- >> becky's -- >> go ahead. becky's point. you have 40% of s&p earnings, total s&p earnings coming from outside the united states. >> you take the market versus that which you want it. if you subtract out all the difficult stuff, all you are left with is good stuff, right? it's a very selective at that analysis. it's not cheap and relatively underlying not great. >> can i inject politics into this? so boehner leaving on friday means, some would say, that we could have a government shutdown not next week but more likely mid december. if that's true, how does that weigh on janet yellen?

how does it weigh on the markets? how does it way on the economy? >> there's no way the fed can move while they wait around. >> that's the question. does it change the calculus. >> if i were a fed governor i would think it would, especially if you're very worried about raising rates to begin with and causing any agita. >> things don't look better than they did last week, let's say. >> exactly. precisely. >> do we go back and retest the lows. are we in the process of doing that? >> yeah, we are definitely in that process right now. one of the things we did at the end of july, we raised cash. we took down our u.s. equity exposure in anticipation of something like this. we didn't know what the catalyst would be but we knew the conditions were right. we've held back -- we've held putting back a lot of that money in this environment because we thought we wouldn't retest those lows. it's playing out pretty much as expected. >> is there a number in your

head that says if it gets to 3 to 4% where we would be interested in putting the money back in. get another 3, 4% down side from here, sure. >> when you hear carl icahn saying things like something really bad is on the horizon, he is more hedge than he's ever been. does that affect you? does that impact you? >> it does. especially in the fixed income complex, and i think he's right. we took down our fixed income exposure 18 months ago in anticipation of interest rate normalization and also on the belief when you've had almost a generation -- not a generation, a decade of low or falling interest rates you know people have done some pretty crazy things in a leaf verdict way. when you start to get interest rate normalization. >> it will shake out something. >> something will shake out. sort of like dynamite fishing. you throw the dynamite in, boom,

a couple of hours later the fish will come to the top. it will be av the second or third interest rate rise. >> i like that analogy. >> becky brought this up earlier, the "wall street journal" article about the spread between investment grade and treasuries. that's a potential warning sign that has forecast problems in the past. something we should be -- >> not only -- that's a great point. not only in the investment grade sector but also in high yield. >> high yield's a whole nother. >> whole nother conversation. that's what icahn is saying about it's not always about the price, but it's about the context. the context is you're having more and more debt getting issued on light terms, for giving terms. that underwriting basically always the presser to something much more difficult. >> good to see you. thanks so much.

>> thanks. when we come back, your money your vote. we're going to talk about new poll numbers on the presidential race. donald trump unveils his tax plan and washington rushing to beat the clock on a possible government shutdown. there's not going to be a shutdown this time but more likely next time. plus, house speaker john boehner quitting congress. that's the reason. not before blasting hard line members of his party. it's a message that eric cantor understands better than most. former speaker. before we do that take a look back at today in history.

welcome back to "squawk box" this morning. a new poll out on the presidential race. this one coming from nbc news and "the wall street journal" finds that donald trump is fading. he is tied with ben carson. carly fiorina moved up to third place tied with senator marco rubio. both have 11% of the polls vote. >> that shows trump 31/20, 11 point lead. >> it should be a little bit lower. what is it, supposed to be low 20s. supposed to be a little bit closer. jeb bush, now we should tell you in fifth place at 7%. the guy that everybody thought was going to win is still trying

to see whether he can hang out long enough to get you there. >> the trump campaign has a news conference set for 11:00 a.m. eastern this morning in new york city. mr. trump expected to announce his tax policy. in an interview yesterday he promised a, quote, large segment of taxpayers would have a zero rate if he wins the white house. check this out. a scary moment for carly fiorina at a campaign event out in san antonio. a curtain back drop behind her collapsed. several women rushed to protect mer. some in the crowd yelled trump. she responded, trump, hillary, it could have been lots of people. >> conspiracy theories abound. congress racing against the possibility of another government shutdown. john boehner is quitting congress. here's what he had to say about his party in an interview yesterday. >> it's not about hail mary passes. it's the woody hayes school of

football. three yards and a cloud of dust. three yards and a cloud of dust. it's a slow, methodical process. >> joining us this morning is former house majority leader eric canton. and in an opinion piece in "the new york times" he writes he agree with agrees with speaker boehner. eric cantor is currently on the hill. >> i was stunned when i heard the news. there is a lot of discussion, a lot of chatter, a lot of anxiousness in washington. >> people say this was an act of him putting the institution before him. i look at this and say, this is what i would do. i would say, forget it.

you think this is an easy job wrangling these guys. it has to be a huge task. >> it was in classic john boehner style. he has always been a very devout catholic and for 20 years had been wanting the pope to address congress. as he said in that interview, he woke up one morning and that next morning decided he had done what he need today do. >> the president was talking on friday, president obama, and he said that, look, we can maybe move forward and try to get a lot accomplished in the next month while he's still here. wouldn't surprise me to see a budget where the republicans and democrats both vote together to get something passed. that's going to leave us open to a potential government shutdown come november or december when you hit the spending limit thresholds. >> you know, i think that the republican numbers have been there, done that on the shutdown question, on the teetering on

the question of the nation and the spending and whether it will be there. >> that is not what the plank is saying at this point. >> listen, here's what's going on. i think with john boehner doing what he did creates the opportunity for the republican members to come together. a lot of them are calling for sort of a family meeting and really discuss, you know, what is actually doable in a divided government. >> why are you lamenting this a little bit more, meaning the way i look at this and at least the tea leaves that i read, the ide idealogues beat the pragmatists. >> i like to think they have too much power, stresses honesty with constituents that put them there. i think what john boehner has done at this point is given the party an opportunity to come together and say, look, we're in a divided government. stop sitting here and setting expectations that you know

cannot be reached. we as the speaker had said in his interview, we have got to go about incremental progress. before you know it, day in and day out, week in, week out, month in month out you will get to your goal and it's not just about all or nothing. i mean, washington is in a divided government state. you ought to be able to work together. listen, this does not take the president out of it. >> why is this going to approve the state of affairs? >> well, again, i think there is an opportunity here for the conference to come together and realize, you know, we have now been put in the position that all eyes are on us. there are big things that need to happen. >> don't you think that harder line republicans are emboldened by the fact that they or they say we got rid of the majority leader? and now we got rid of the speaker and that's a statement? and we're not interested at all with having a family meeting unless we're the ones who are at

that table calling the shots. >> but you've got to remember here, you're talking about a small high north of t small minority of the republican conference. you're talking about a small minority. it's analogous with what's going on -- >> the small minority is the reason boehner is not there. >> this is a small minority of people. >> 50? 50 people? >> maybe not even 50 people. small minority who have enough to block something but can't effect accomplishing anything. >> they're talking now about wanting mcconnell to follow boehner out the door. >> listen, i had enough time trying to figure out the house. i can't tell you what may happen. mitch mcconnell is the leader. i don't believe he's going anywhere. mitch mcconnell understands you have to do some things to prove that you can govern, to earn the trust of the people. again, i think this is a real turning point for the party and

there are folks that realize that things have to continue. at the same time, listen, we're all conservatives. we believe in limited government, we believe in limited spending. if you look at the record, john boehner and i when you were in there, you look at what kind of decrease in discretionary spending occurred, it's the largest decrease in discretionary spending. >> i know we have to go in one second. one question. you were just with jeb bush, right? >> yes. >> what does this say about jeb bush's chances at getting elected? meaning, if you think that -- if you think that the extreme right of your party just beat boehner, does bush have a chance? >> so, listen. the american people are frustrated right now. look at the economy. look at the jobs numbers. look at the wage figures. they're frustrated. conservatives are frustrated. i think what jeb can do and certainly what leaders should do is be able to recognize, identify with that frustration

but yet put a vision out there. other than jeb, when's the last time we've seen a republican candidate talk about jobs and the economy. when is the last time somebody on the hill was able to do that because of all the distractions going on. >> the latest poll numbers are 7%. there's a story that says some of the big donors are anxious. >> becky, let's not let that get ahead of ourselves. listen, at this time in the cycle, herman cain was number one. you go back to 2004, al sharpton was way ahead of john kerry who was in sixth place at the time. again, these early polls are all interesting and entertaining. i think that, again, if you have a leader, which i believe jeb is that leader, that's got a vision for this country to bring us forward, to help everybody increase their standard of living and rise and has the ability to implement that decision, that's what's needed. that's what's needed on the hill

and for the country. >> what does it say that the three top candidates in the pole are all outsiders. the three are outsiders. >> i think, again, it is a -- evidence of this frustration that all of us feel, that conservatives, we conservatives feel, the american people feel that things aren't getting done. it's almost like a protest position because people don't have to get serious right now going to the ballot box. >> leader cantore, thank you very much for coming in today. great to see you. >> pleasure. >> are we going to fill a little boehner? >> we are going to see what's coming up if you want to jump to b 99. >> there you go. we have the ceo of eriksson coming up, did you know that? >> i did know that. >> i'm excited about it. or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night.

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prge! a manufacturer. well that's why i dug this out for you. it's your grandpappy's hammer and he would have wanted you to have it. it meant a lot to him... yes, ge makes powerful machines. but i'll be writing the code that will allow those machines to share information with each other. i'll be changing the way the world works. (interrupting) you can't pick it up, can you? go ahead. he can't lift the hammer. it's okay though! you're going to change the world.

we do have breaking news, folks. alcoa looks like it's going to be splitting into two companies. two distinct companies that will be spun off. the transaction is expected to be completed in the second half of 2016. board of directors saying that they have unanimously approved a plan to split into two independent companies, each of which will be publicly traded. this is the culmination of what they've been doing for several years with the transformation of the company. it's going to be splitting into one company, upstream company will comprise five business units that today make up global primary products, aluminum, casting and energy. the innovation and technology driven company will include global world products, engineered products and solution

and transportation and construction solutions. they say, again, the transaction is expected to be completed in the second half of 2016. at that point alcoa shareholders will own all of the outstanding shares of both the upstream and what they're calling the value add companies. they're splitting it into upstream and value add. it's intended to qualify as a tax retransaction for u.s. federal income tax purposes. we'll be watching more about this. klaus kleinfeld who's ceo, they immediately went to work reshaping the portfolio. he says they have repositioned the upstream business and turned the cast houses into commercial success story. they are now saying that that upstream business is what they're calling built to win throughout the cycle. maybe something that doesn't feel the down turns quite as intensely as it has in the past.

>> if you look at the stock, look at it on a one-year basis. it's 50% of what it was a year ago. >> the stock has been under pressure for quite a while. i don't know if we can go back on the five year, you can see it lived a much higher life at one point in its existence. this is clearly an effort to try -- >> to his point, if you look at the serious downturns, the stock did come back there. the company has been in a struggle for quite a while. it has different turns in terms of demand and commodities industry. >> we'll come back to this issue. i'm sure we'll be talking a lot more about this this morning. in the meantime, we'll talk a little bit about i want to say the telephone industry. that's so old school. >> mobile. >> makes it sound -- >> mobile. facebook ceo mark zuckerberg and bono teaming up for a commitment to provide internet access for all by 2020.

almost equating it with water. telecom networking giant erickson making its own bed claiming there will be more than 7 billion broadband subscriptions by 2020. here with us on set right now is hans vesberg. ceo of erickson. good morning to you. >> good morning. >> do you think that their prediction in terms of how far the want to take it is real lis snik. >> yes, absolutely. i mean, we have seen a tremendous development in the last 25 years. we have reached 3 billion but now the whole technology has roll out and the price has come down. our prediction of doubling the people in the next 25 years. it took us 25 years to get where we are now. the main reason is for every $10 you reduce the price on a

smartphone, 100 million people on earth can buy it. that's a sensitive industry. you can walk around with your mobile phone here and it works in africa and sweden. >> what about the infrastructure? >>. >> yeah. >> facebook is trying to put a drone in the sky which is complicated. >> yeah. >> for battery purposes. google is trying to do it with balloons. how are you going to do it in so many rural areas? >> i think the standard technology by 2020 we'll have mobile coverage for all people in the world except 300 million. however, it will still be 1.4 billion that will use internet because of illiteracy, don't have the technology. in the most rural areas you need more innovative solutions on the power grid. the majority of the population all except 300 million will have

standardization. >> you're at 3 g and you're starting to build out 5g. >> 3g and 4g was built for you and me. the 5g is the industrial internet. you can con connect with the sensor, the autonomous car. >> how much faster is it? how much less energy does it take? >> it will be 10 to 20 times less energy. it will be devices that can actually be around for ten years without changing the battery if you have a low powered radio signal. it will be 100 times faster at least. we need to do autonomous calls. then you need good lay tans si. >> is the broadband so fast that

people might cut the cord? this goes to the television issue. people will watch broadband over 5g? will the pricing ever make sense? i don't know how conflicted you are in terms of how to think about that. >> what will happen in the markets where fiber has not been rolled out, take africa, go from 70 million to 700 million, of course, the ff viewing will be in a different way. it will be they will use the mobile networks for tv viewing, however, in markets like the u.s. where you have a great infrastructure you would continue to use them. >> right. one of the questions and sort of existential threats to the cable indust industry, maybe not today but 10 or 20 years out, do you ever foresee a day where people get their television or broadband not over a pipe in places where a pipe exists? >> i think what we see of the young generation today, they look more on tv and media but

they do it wherever they want and what type of screen they want. the tvs at home, that is less and less relevant for them. fast forward ten years from now, we'll see how that next generation will be treating their tv viewing. i think content and different access is super important for any so-called media company. >> hans, thank you for coming in this morning. >> thanks. >> good luck at the u.n. meeting. >> still to come, would he have a business visionary. an idol to people around the world. sir richard branson. later today i'll be sitting down with former president bill clinton. you can see that here on cnbc starting at 11:50 today. starting at 11:00 eastern streaming live from cnbc.com i'll be holding a panel. stick around. "squawk box" with richard branson will be right back.

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welcome back to "squawk box." we have some news to pass along this morning. the passing of investing icon richard rainwater has died. he was a legendary deal maker and became a mentor to new generations of investors. eddie lamb percent. he put michael eisner in his job at disney years ago. brook scott, columbia hca. he worked with clint eastwood and other investors. he was an investor in pebble beach, the club in california. he started his career working under the bass family. has really been a mentor to so

many on wall street and a legend. richard rainwater has died now at 71 years old.

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♪ the answer is yes, it can. so, the question your customers are really asking is, can your business deliver? good morning again, everybody. welcome back.

we have on set one of the world's most uk is sesful visionaries. i'm talking about virgin founder sir richard branson. for the last four years entrepreneurs have viewed for a chance to bend his ear in the pitch to rich competition. the winning prize is $1.5 million plus mentoring and leadership advice from sir richard himself. sir richard branson joins us on set this morning. also joining us is terry johnson. he is founder of original sticks. that's a detroit-based company that makes iphone cases out of broken hockey sticks that were actually used in nhl and college games. gentleman, welcome to both of you. it's a pleasure to have you here today, sir richard. we talk about entrepreneurship all the time, but you've made the point when you started your career entrepreneur wasn't even a word that was ever used or thrown around at that point. what do you think has happened in terms of people really celebrating entrepreneurship and people who go it alone. >> i think 50 years ago the world was run by big companies.

british airways, at&t was the only telephone company. excitingly over the last 50 years those companies have been allowed to be competed with by thousands and thousands of entrepreneurs. and entrepreneurs making the world a better place. and, you know. the only way an entrepreneur can succeed is by creating something to make the world a better place. it's been a fantastic 50 years. wonderful entrepreneurs all over the world getting up and shaking up the establishment and it will never be the same again. >> getting your message out when you are an entrepreneur starting out and taking on some of the big giants is never easy. you've been a marketing genius when it comes to gorilla marketing and making sure you get the message. we have one example. we have one example of one of the things you've done to taunt the a along the way. one of them, we have pictures. maybe one of them you want to

talk about is what happened when they were sponsoring the london i and things didn't work out. what did you do? >> they were trying to get the i -- this giant wheel up. i had a company and i was and i technical companies. so we flew the air ship company over the wheel at about 6:00 in the morning, and it just had some words on the side of the air ship which managed to get the headlines the next day, ba can't get it up. i think a little humor is important to use when you're taking on bigger competitors because you can't afford the kind of advertising budget that they got and humor is good. >> humor works and certainly gets the press to sit up and pay attention. >> and get your story on the front page rather than british airways. >> how are you trying to reach

out and help people not with just a monetary prize but more importantly giving the founders advice and kind of telling them things along the way. how did you find terry? >> i found terry in detroit. detroit is the city that needs a boost and virgin atlantic airlines just started there from england. we held a pitch to rich competition, and lots of young detroiters who are doing fantastic new things turned up. and they submitted their ideas and we shared ideas and i hope some were useful. >> terry, your company is a company that actually takes real hockey sticks that were used in nhl and college games and puts them right into the back. so you can feel the stick in it. how did you come up with the idea and what are you doing at this point?

>> as a life long hockey player and fan we knew the composite hockey sticks had an issue where players would go through hundreds and thousands of these carbon fiber hockey sticks every season. but they break so frequently and there's noviable means of recycling them. we saw the last void for phone accessories. many are mass produced, look the same. we decided to combine the two and recycle these sticks and make them into one of a kind pieces of the game. >> how do you get your hands on these sticks? i imagine they are not sitting around in garbage containers after the game. >> we partnered with 50 to 60 teams. they are happy for us to take them off their hands. some might pay thousands of dollars in disposal fees. >> in terms of working with the nhl anything you can talk about

now that you might want to. >> back in june, one of the pieces advice mr. branson gave to us you have to be able to delegate responsibilities, and so up until that point we were spending a lot of our time fulfilling orders, packing orders and didn't leave a lot of time to grow the company. we finally took that leap of faith, hired some staff to fulfill orders and so we're excited to announce that we've recently reached an agreement to manufacture nhl license cases which will be available q4 this we're for the holiday season. >> still using the stick? >> yes. still made with sticks. but have all 30 nhl team license logos. >> what's this cost? >> this will be available for $40. >> 40 bucks? >> yep. 100% manufactured in detroit. >> what's the margin on that? >> i'd say it can really depend,

but i'd say it's kind of like industry average. we sell wholesale to pro shops and they expect their margins. >> so you sell for 20, they sell for 40. >> yeah. >> do you have a stake in this? >> i don't have a stake. >> you take stakes in lots of little businesses. you have all sorts of people that come to you constantly. >> we'll take stakes in some unbranded virgin businesses, but i try -- i say yes to so many things, we have so many companies, i try to say no. i'm not good at saying no. he hasn't asked me yet. >> how much of the detroit side of the story was appealing to you? a city that's been sort of going through tough times for a number of years now and here's an entrepreneur from that city. did that catch your eye as much as anything else? >> i think, you know, detroit has had a really, really hard

time. and it needs a leg up. and i spent a day sort of biking around detroit, going out and meeting a lot of small business there's. it's fantastic. they are all working together to try to get back on their feet again. and i think they are getting back on their feet. >> do you think it's more difficult or easy now to be an entrepreneur in america or the orlando for that matter for a variety of reasons. if you're a one man band so to speak you have social media to get your name out but maybe access to capital is more difficult. >> it's easier. there's a lot more competition for ideas. but right now there's lots of sources of money if you got a good idea. and if the people with money believe in you and feel that you're somebody who is committed to either, creating something

really good or doing good. and so i think now is a fantastic time to be an entrepreneur and get set up. >> terry, congratulations not only on the deal with sir richard but also the deal with nhl. we want to thank you for joining us today. it's been a pleasure. >> thank you. >> appreciate it. >> congratulations. sir richard is staying with us. >> we'll talk to him a lot more about entrepreneurship and other issues. more from sir richard his thoughts on global economy and the race to get individuals into space. you're watching "squawk box," first in business worldwide. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

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mayhem. >> come on. do it. you're leaving me hanging right here. >> 20 years of unprecedented access. >> but first becky -- >> thank you, joe. smooth anchorman. >> after 20 years that's what i'm able to do. >> 20 years of bringing wall street to main street. >> are we now at a point where companies are pushing back in a way they didn't before? >> now it's time for the next 20. >> today we're bringing the future according to richard branson. he's here to talk about entrepreneurship, space exploration and his vision for the world. conversation for the next 20 years begins right now. ♪ all around the world ♪ you got to spread the word ♪ going to make a better day >> announcer: live from the heart of business, new york city, this is "squawk box."

welcome back to "squawk box" everyone. this is cnbc first in business worldwide. i'm becky quick along with andrew ross sorkin and scott wapner who is in for joe kernen. our guest is sir richard branson. scott has a roundup of the morning's top stories. >> alcoa announcing it will split into two publicly traded companies. the former dow component said its legacy aluminum operation and automotive are diverging and no longer compatible. alcoa getting a lift on this news. glencorp shares getting hit hard. take a look at glencore down another 3%. check out the futures this

morning as well. u.s. futures down at the lows of the morning now. the dow open by more than 100 points to the down side, the s&p and the nasdaq decidedly negative as well. >> one headline to this as well crossing the tape, energy transfer equity and the williams companies announcing a business combination today. the transaction valued at $37.7 billion with a b includes debt. in the meantime we'll get back to richard branson the conversation for the next 20 years focus on the future of entrepreneurship and impact visionaries will have a global economy. his retail music business led to other endeavors from airlines, mobile, health and now space with virgin galactic. the virgin brand is 40 years old

and operates in 50 countries. we welcome sir richard back to the table. let me ask you this. how many businesses all around with the virgin name on them? >> maybe around about 300 businesses, i would say. >> how do you select what you're willing to put the virgin name on it, how has it changed in terms of what kind of businesses you want to be in? >> if i see an industry that i feel needs shaking up, and we feel we can do it better then we'll go into it. but there has to be a real need for us, so, you know, some 30 years ago i went into the airline business because i got bumped off somebody else's airline and i thought, airlines do bump people. so having a 747 for sale,

literally that's the kind of reason that gets us to go into an event. >> man do, they regret bumping you. >> with all of these businesses, what is the virgin brand stand for, if you will? and what businesses, for example, wouldn't you go into? >> i wouldn't go into cigarette businesses. i wouldn't go into anything that will harm people. i wouldn't go into any industry where people are doing it really well already. so, you know, we set up virgin america a few years ago in america. the airline industry was not great. and the quality of the service wasn't great. so, we'll step in where we feel we can do it better. >> how does it work? does a great entrepreneur come to you with a great idea okay i'll get behind it or do you say i have a great idea and i'll

find somebody to run it. >> a mixture of the two. somebody came and say, health clubs, they are not that great. you know, i can do it better. so we said to him fine, let's give it a go. and go around the world, create the best health club ever, and few years later we got 400 of the best clubs in the world. so, on occasions we'll in turn decide to go into something like space was very much my own baby. i had seen the moon landing and i thought one day i'll go to the moon. but governments run space travel or did run space travel and they weren't interested in sending you to the moon. so in the end, virgin galactic, let's find an engineer to build

us a spaceship. we headed around the world and visited engineers and technicians and found started building spaceships and mother ships and space ports and been tremendously exciting. >> sir richard, we'll talk more about space in a moment. you said before that you have a hard time saying no. you never learned to be very good at that. i wonder if there are things you said yes to that you regretted down the road and what have you learned from that >> we've fallen flat on our face on occasion most notably when we took on coca-cola and we had a lot of fun trying to knock that brand into second place in the world. and they had much bigger guns than us. they literally got a plane, filled it with money, filled it with sport teams and wherever virgin cola was on sale they flew into the uk.

it disappeared from the shelves. what we learned from that not to take on big companies, but if you're going take on a big company, make sure you do it where you have a quality product that's palpable better and with two cans of cola we couldn't be better and they squashed us. >> you said failure is all part of learning. i would assume that you're the kind of guy that doesn't make the same mistake twice. what's the kind of lesson you would take from something like that in a way that you would look to form your next business? >> i would just simply say, you know, don't do anything unless -- unless it's going to be much, much better than somebody else. when we took on british airways and they tried to squash us, virgin atlantic was a lot better quality airline and, therefore, they failed to drive us out of business and we celebrated.

we came out the stronger for it. so there's no fun in doing anything unless you're much, much better than your competitors otherwise you just won't succeed. >> you spend a lot of time talking to entrepreneurs who come for your mentorship or they ask you questions. when you look at the best entrepreneurs that you spend time with. what are the qualities, we talk about venture capitalists. one thinks you can't be a great entrepreneur after the age of 30. he won't invest in someone over the age of 30. do you buy into that? >> i think there's something to be said for starting off in the entrepreneurial career when you're 15 or 16, when you got no mortgages, you got no baggage, and you got nothing to lose. by the time you're 21 or 22, you got a mortgage, you got a partner, you won't take risks.

so the sooner you start the better. and the sooner -- the best way of learning to become an entrepreneur is getting out there and doing it. but what do we look for? we look for people with passion. we look for people who believe 100% in what they are doing. we look for people who are good at delegating, who don't try to do it all themselves. who are great getting a great team of people around them. we look at people great at praising people not criticizing people. >> how hard is it to get a really great entrepreneur to work four. the reason i ask i think of someone like elon musk, great entrepreneur, who clearly, i think, would want so much of his own control of a business but he probably wouldn't want to work with you or frankly anybody. it's not about you it's about them. how difficult is it to find that person to work within your world is this >> you need to create the kind

of environment where you kind have a company full of entrepreneurs, and you need to reward them in a way they don't go off and set up their own business. and, you know, that's a challenge. and a real entrepreneur is somebody that quite likely will want to be their own boss. but i think at virgin we call them entrepreneurs, we have a lot of entrepreneurs we're proud of and they do great. >> we'll take a pause. stick around. we have a lot more to talk about including some things you're going around the world and how entrepreneurship is changing that and we'll come back to that in just a moment. >> we'll have much nor discuss with sir richard branson including the great race to space. "squawk box" will be right back after this short break.

temperature. welcome back to "squawk box". more news in this morning regarding the volkswagen emissions scam. multiple reports say german prosecutors have begun an investigation of former vw ceo. it will focus on allegations of

fraud involving the sale of cars with manipulated emission data. the ceo said he had no knowledge of the emission test results. scott, thank you. over two years since the last space shuttle went into orbit but that doesn't and inrace to conquer space is dead. today a host of private players are fueling and funding our need to explore the galaxy. and trying to find a way to make it economical. joining us to talk about the great race is chairman of seds. also will pomerantz the vice president of virgin galactic and our guest host this hour is sir richard branson. this has to be something that you're so excited about on a personal level. >> yes. of course. as a kid in me is really excited

about going to space, and going out one day to my kids and we got these 400 incredible engineers who are working day and night to make that a reality and to make it a reality hopefully for hundreds if not thousands of other people. >> where are you right now in trying to make that reality happen >> we're coming along really well. we have a team that's up to 400 great engineers and supporting people making it happen. we have a lot of hardware that we have tested. most importantly we have a real market. we have 700 people who have stepped up and purchased their tickets to go space. only 551 people have ever been to space. we're on pace to more than double that. >> when can we expect those people shoot into space. >> when it's ready. we have the backing of a great founder and wonderful customers who are saying here's an arbitrary deadline. they say test this vehicle. make sure it's safe and delivers

the quality of experience they expect. >> how far did that crash set you back? >> not a massive amount because that investigation we were able to go through and find out it was an operational issue than a design issue. that means there's lots of questions we have to ask ourselves, lots of additional work to do. >> sir richard, that episode didn't shake your or rattle your confidence at all in the safety of this? >> of course it rattled my confidence for about 48 hours. but, you know, talking to our engineers, talking to our teams, seeing their commitment, talking to the people who were with us, seeing their commitment made us determined to carry on. and we have done so. it's not just putting people to space, you know, we're also developing rockets which will

put satellites in to space. we announced a new project called one way which will put a massive array of satellites around the earth and there's 3 billion people not connected. so one will help connect many of those people. so that's another exciting aspect of virgin galactic. >> sir richard was interested in what you were doing because of your work with kids. what is seds? >> at seds we're creating a network of young people all over the world from diverse academic background and cultural background and helping them to make an impact in space exploration which is traditionally hard to get into as a young person. >> how can they make an impact. i'm trying to get my head around and what you're doing to inspire them. >> there's tons of opportunity

for young people in the private industry. they are hiring lots of students, lots of young people to work on projects that they have not been able to work on in school. and so -- >> like what? >> so, like small satellites that are generally less than the size of a shoe box and because of the consumer electronics industry we are enabled to make extremely powerful technologies out of the fraction of the size, cost and time. it was formulated as an educational tool for university students, and in reason years they've been brought to maturity by the private industry and now coming back to students and they are able to adapt these technologies that were created first for them, matured by the private industry and adapt them for sign the picientific missio.

>> you said getting private companies involved in the space exploration has opened up the market, but we still look at the excitement that people get over things like this blood moon from last night or this announcement that's coming from nasa later today at 11:30 to talk about maybe water potentially being on the planet. does it make you sad that the governments aren't spending the same amount of money they used to because that's where the big money is. >> not too much. i think private companies can do it for a fraction of the price that governments can do it. if we are right in thinking that millions of people that to go to space that will generate the cash where we can do the mars missions ourselves in future years. if there isn't the demand maybe those missions aren't warranted. but i'm absolutely certain the vast majority of people listening to this program if they can afford it want to go to

space. >> what do you think the price point ultimately becomes? >> i won't have everybody waiting for that. we need them to pay up now. but i think -- i think it will, you know, crossing the atlantic was once incredibly expensive and it was the wealthy that pioneered the way for people to able to cross the atlantic without thinking too much about the price today. and i'm hoping that the same will apply to space. >> i love watching with all the things in space from here. i really don't have any interest in going to space because i like my life here. your going to go to space >> of course. >> but you said not on the first flight. >> i'm certainly going on the first flight. we got these brave test pilots putting it through its paces first but i certainly will be going on the first official flight. but actually you are in a minority. you'll find -- would you like to

go to space? >> yes. >> of course. >> you lead me to my next question, almost anybody can answer whether you think young people are still inspired and romanticized by the thought of going to space that if you ask any one of us or anybody with a young child, you know, if you ask a child what do you want to be when you grow up, would astronaut be near the top of the list or no? >> i think in the last few decades people have given up on the idea that they could ever become an astronaut. now that there's a chance they could become astronauts again i think -- i think a lot of young people will aspire to that and once they see that becoming an astronaut is a reality i think we'll find huge and huge amounts of people wanting to become astronauts. >> we at virgin galactic get to

interact with a lot of students. they are incredibly excited about going themselves and increasingly because of these programs building hardware and flying them into space. >> do you feel you're in competition with somebody? do you feel you're in competition with jeff basos or elon musk or anyone else trying to get to space? >> of course. competition is extremely good for all of us. and, you know, yes, we're in a slightly different field than they are. but, you know, we would like to get to mars first. >> is anybody else trying to do it your way? >> everyone has their own different flavors. you'll find it's a friendly competition. a lot of us came to this industry because we were passionate. we want to see them succeed. we want to succeed more a sooner. >> you don't share technology?

>> not very much. we share lessons where i want relates to safety. >> i want to poll on this, nonscientific poll. i'm not the only one that feels this way. thank you both for coming in. >> when we come back this morning's top stories, glencore getting slammed. becky will be sitting down with president bill clinton at the clinton global initiative. check out the entire session with business leaders on making the economy work. live stream right from the home page at cnbc.com. we're back in a moment.

. welcome back to "squawk box" this morning. glencore sinking to all time loss. investors are worried whether the commodities giant can meet its debt targets given the slump in prices. glencore shares are down some 60% in just the last two months alone. that chart telling a pretty dire story about what's been taking

place with glencore and i gather, guys, if you were to look at sort of the path of commodities that it would look fairly close to that, though the sliding glencore may be more precipitous than the overall commodities market. >> there's a story in the "wall street journal" on the investing section that takes a look what's happening with sugar cane prices in brazil. they take examples of companies that build up to meet the expected demand from china. >> negative research report out this morning, i'm not sure if it was in europe or here that was at least blamed for part of that selling that you're seeing this morning. but a huge slide day after day. investors right. you see stories like this. you can't help get more nervous, right? coming up, much more from sir richard branson. first as we head to break check

out futures. dow futures off their worst levels of the morning but showing across the board, s&p down 11.5. dow open lower by 85. "squawk box" will be right back.

welcome back to "squawk box". sir richard branson's, one of his entrepreneurial missions calling on the world to tackle climate change. back in 2009 he founded the carbon war room and earlier it merged with rocky mountain institute. joining us with more on the business innovation opportunities being created by climate change itself is christina -- i'll mispronounce your name. we're all related here. executive secretary of the united nations framework convention on climate change and jose marie olson former president of republic of costa rica. and our special guest this morning all morning has been richard branson. good morning, everybody. here's what i want to understand from a business perspective. actually i'm going to go to you on this first.

which is the opportunity from a profit making -- people talk about climate change all the time in the do good effort. where is the business opportunity? >> the business opportunity is enormous. we can create millions of jobs worldwide, by turning the world into -- running the world by clean energy rather than by dirty energy and we can also, if you turn the clock forward get to a situation whereby running the world on clean energy than dirty energy we can have a electricity price or fuel price be equivalent to $30 or $40 a girl forever rather than having to worry about prices shooting back up to $150 a barrel. >> how far away are we from that realistically >> we've been working on that in the last five or six years in the carbon war room and also

within the rocky mountain institute. providing jobs and opportunities is something we can certainly do out of reducing about 50% of carbon emissions that can be taken out in a profitable way. so whether it is providing $900 million worth of investment opportunities in the caribbean islands to go from fossil fuel base to clean negotiations, bringing down the cost from 35 to 67 cents per kilowatt hour to 22 or 23 cents or to reconvert 50,000 ships around the world that combined have carbon emissions that can be taken out of 1 billion carbon emissions all of that can to be done in a profitable way. >> when you look at the areas of investment you can do it in china? if you were going to invest -- >> china is -- the rocky mountain institute that has done enormous work in china and china

realizes now that they got to move into clean energy environment. and i think one of the most exciting things was the announcement china made about supporting what's happening in paris. >> you look, though -- >> china is the story, right? it is totally the story. job creation justin united states today there are already two times as many jobs just in solar let alone renewable negotiations than there are in coal. china, what have they announced as sir richard announced? they announced they will have by 2017 the largest carbon market in the world. they are going nobody stalling 1,000 gigawatts of renewables. that's the equivalent of the entire generation capacity of electricity of the united states right now. why are they doing it? not because they want to save the planet. it's job creation. good for their health. makes them more competitive as

an exporting country. makes fundamental sense. >> on the front page of the "new york times" they say this progress on warming comes with caveat. they say even with all the promises that have been made you're still looking at the planet's atmosphere, the temperature on the earth rising by more than six degrees by the end of the century. >> unfortunately, that's incorrect because the fact is currently that would have been the case in 2009-2010. but now if all of the promises and pledges that have been put on the table, 85 by this morning's count are actually implemented, we're already down in our trajectory from six degrees to three degrees. so we've already made a huge progress. not enough. because we definitely have to get down to two degrees. but, you know, saying that we're not there is a little bit like saying well when you take the train from new york to washington, by the time you're in philadelphia you've failed because you didn't get to washington.

well it's because it's a journey. so we're now at, i think, a very, very important progress in where we have to go but it is not enough. it is very, very clear that countries, governments, some national governments and corporations need to continue to increase their investments in renewable energy. >> do you have faith that the commitments you're talking about will be followed through >> yes because they make fundamental sense. not because they want to save the planet but because they are coming truly from the most powerful driving force which is the national interest and the corporate interest that's behind them. >> what do you say to nonbelievers who don't believe the story that you and others want to tell and point to science that they believe favors their view more so than the numbers that all of you look at and say favors yours? >> so, if you did want to forget what 4,000 scientists have

agreed upon, and you thought that all of them were wrong, look at the economics. in 2014 the u.s. connected a solar system every two and a half minutes. in 2013 china put more solar up than the u.s. has ever put up in all of its history together, or measured a different way than the entire world put up in 2013. it makes economic sense. and the fundamental driver here is the fact that, as she is dealing with 25% of total carbon emissions in the world they need governments to come together. the other 50% sir richard and other entrepreneurs are dealing with make absolute economic sense today to be wiped out in a profitable way. >> sir richard, do you have an answer? how would you answer that? >> i've met a few climate skeptics any more.

the overwhelming evidence is the world has a problem. let's have fun doing something constructively about it that saves the world money and powers the world at a price that is less than today. and let's rally, you know, hundreds of thousands of entrepreneurs all over the world to do it. i've just come back from africa where these little companies are putting solar panels on houses that didn't have electricity in their life and these people are switching on light bulbs for the first time. they are able to plug in their mobile phones for the first time. that solar panel can payback within two years, two to three years and then they got electricity free forever. it's a tremendously exciting time and we've got to make it happen. >> where do you stand on nuclear energy? >> i personally -- >> you talk about it being efficient. >> i personally think it's a

good idea. politically it's never going to happen. >> china is going to do it. >> awfully lot better than coal. you don't one more coal power station built anywhere in the world. the world can't afford it. so, if a country completely got nuclear, they should do so. >> in the united states, if you look at elon musk one of the great critiques what he's done people say it's a massive government subsidy. can any of these businesses work over the next decade without the subsidy? >> yeah. absolutely. it's not the first time in history that governments actually put in money into r and d because that's the way things are done but, of course, they can do it without subsidy. look at germany bringing down their subsidies and continuing with renewable energy. it's a fantastic case. and the fact is that the cost of

solar has come down 80% since 2008 and will continue to be driven down. to get back to your nuclear question it's not a question of ideology it's a question of nuclear is certainly a non-emitting source. you cannot have nuclear without extending the grid and honestly in many, many developing countries you just can't afford to extend the grid any more it makes much more sense to go with de-centralized panels on everybody's buildings or communities. so what's the need? >> these conditions we set to be met are not possible, that's why you end up having something like volkswagen cheating on emissions on these things. they couldn't reach the standards so they just cheated. >> of course they could reach the standards. >> not at price point. if you look at the four cylinder

cars they cheated on this whole thing. >> it shows they should have actually invested their money in battery driven cars which is the future rather than diesel driven cars and cheating. and i think, you know, what's happened to volkswagen is positive news and hopefully other car manufacturers will do the right thing and will invest in the future. >> okay. we got to go. would you boycott audi or vw? would you buy a vw car? >> i would want to operate a car that is clean. >> what does richard branson drive these days? >> i live on the sidewalk. >> a golf cart. fair enough. thank you everybody. >> when we come back this morning, danger ahead. karl icahn sending a market warning. we have the details after the

break. check out futures. they have been under pressure. you're still looking at dow futures indicated to open down by triple digits. s&p futures off by 15, nasdaq down by 29. "squawk box" will be right back. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this.

among today's top stories, danger ahead. that's the warning from billionaire investor karl icahn in a new video set for release tomorrow. in the video produced by mr. karl icahn he said low interest rates has caused bubbles and fall out for markets can be dramatic. >> it's like giving somebody medicine and this medicine is being given and given and we don't know what's going to happen. you don't know how bad tend of this is going to be. you do know, though, when you did it a few years ago it caused a catastrophe. where do you draw the line here? >> in a separate telephone interview surrounding the video's release, he told me he's more caution than in years as he believes stocks could go down a lot more.

the fed may have backed itself in a corner. they should have raised rates six months ago. he says it's more difficult to do that now because of concerns over china and emerging markets. donald trump is the outsider washington needs. the video's full release tomorrow morning. >> we have a couple of stocks to watch. media general currently has a deal in place to buy tv station operator meredith corporation. citigroup upgraded to buy from hold at credit suisse. reports say talks between vodafone and liberty global has broken down because the two sides couldn't agree on asset values. coming up, beauty products and smart business practices. the ceo of red flower talks

sustainability in the business community with special guest sir richard branson and more on house speaker's john boehner sudden departure. what it means for conservatives and the next house leader. does it mean more uncertainty in washington, d.c.? we'll discuss that at the top of the hour. stick around.

welcome back, everybody. as we wrap up this special 2020 conversations with sir richard branson one of his biggest missions is promoting a business world that's sustainable. joining us with more, the

founder of the beauty brand red flower. sir richard branson still with us as well. thank you very much for joining us. welcome. >> thank you. thank you so much. happy birthday. >> why don't we talk a little bit how you came up with the idea for red flower. it smells good already. >> thank you. you know red flower came from a very personal place when i was in my second year at columbia business school i was in the swiss alps. i lost total sensory recall. i lost the use of my hand. i couldn't speak. for me that moment was an impulse to recognize both the normal until then and also really as part of the healing process recognition that kind of the one thing that made me feel better was when a friend came to the hospital and washed my hair with this very minty shampoo and just touched. those two things sort of being in a very blank space and being pulled out of it into a place

where you could feel again set me on a mission to bring that to take care of yourself, that moment to stop and smell and feel something. pass it around. just have that connection to scent, to touch, all of those things come together i think to shift the way you feel. and that's been my driving mission around red flower, to deliver a way of filling your life with energy and potential through the things you do every day. >> going from that idea and that mission to actually achieving it and i think you started stealing to barneys in 1999. it's a big jump to get from one to the next. how did you take that and make it a reality. >> lessons we liberian from great leaders like sir richard branson and like my mother. one of the things you recognize as an entrepreneur is that

you're really going to have to deal with challenges every day and believing in what i was doing, being very passionate, being a good listener, making big notes, being responsive to the environment and thinking at the end about the customer. i'm driven around the way people feel. hoping what we do is enhancing the way people live of bringing health to the beauty industry and bringing a point of view that delivers a feeling that leaves you lifted every day even in these habits of just, you know, taking a shower, elevate that. >> we're lucky enough to have your product in our hotel in chicago. >> such an honor. in your spot. it's a small space but an incredibly, you know, thoughtful space. thoughtful space there where it's about just bringing warmth into a short business trip you can take a few minutes for yourself.

>> richard, you talk about sustainability being important. what is sustainability. how do you define that? how do you merit? -- measure it? >> i think it's basically trying to make sure we don't carry on cutting down the rain forests but we try to recycle our products. in america you only recycle about 8% of all products. and, you know, with the population of the world growing by 3 billion over the next say 40 or 50 years, we got to get into recycling. we got to become sustainable as well otherwise there will be no rain forest left, there will be nothing left of beauty. and so, i just come back from vietnam where i've been trying to campaign on rhino horns and there's been no rhinos killed in the last year than in the

history -- and for elephant tusks more elephants killed in history. we need to protect our beautiful species we have left and do everything we can to do so. >> when you hear a mission like that, how does your brand fit in with that? >> i think really we're focused so much on every aspect of how we produce, how we source ingredients. red flower is unique we do make everything ourselves and we make everything ourselves in greater new york area so that allows us to be a little bit closer to our producers and that allows us to make better choices in terms of our responsibility towards those vendors, co-op farmers that we source from and also allows us to rethink the manufacturing process a little bit in terms of how do we batch according to our needs. how do we reduce waste along the way. certainly that has formed everything we do in term of the

quality of the experience which i think is really what has allowed to us grow so sustainablely. >> what about sir richard branson inspires you as an entrepreneur. >> everything. honestly, everything. he's someone who has overcome challenges. what does that mean? to me it means pushing through adversity is what it takes to be an entrepreneur and to do that every single day. i think without leaders like mr. branson you can't -- you have nothing to look up to. you need those goal posts to say i can do this too. it is. it's really about thinking beyond yourself. and thinking about what's going to outlast you. this is what you're doing. you're doing what outlast us. not just what you created but in the inspiration you've given to so many people who have come after you to say you know what? i can do this. i want to change the world. i want to look at the beauty

industry and say hey it's not just about the exterior, it's lindsay lohan about the interior. make this feel good and you'll radiate. >> i want to thank you very much for joining us today. sir richard, thank you. it's been a pleasure. >> thanks for being here in person. it's great. >> thanks very much. i'm glad you have overcome your problems. >> thank you so much. me too. yes, i appreciate that. thank you. >> all right. coming up senator mark warner joins us to discuss the looming budget vote and the announcement by john boehner to resign and later we talk ad week in move to mobile with google's jason spero. "squawk box" back right after this.

. >> washington front and center. sudden resignation of house speaker john boehner testing the will of republican in the face of a possible shutdown. we talk politics and the president's visit to united nations with senator mark warner. and how google is killing it when it comes to mobile search. the man leading it is they're discuss what's ahead to making money from mobile apps. and turning the skies pink for a good cause.

we talk private aviation, new funding and how he's disrupting business travel as the final hour of "squawk box" takes off right now. opposite live from the most powerful city in new york, this is "squawk box". welcome back to "squawk box" right here on cnbc. scott wapner is in for joe kernen. we're less than 90 minutes way from the opening bell on wall street. the dow looks like it will open down by 122 points off. s&p 500 off by 16 points and nasdaq looking to open off by 33 points. check out the markets in europe at this hour as well. we do have red arrows across the board. dax off 1.5%. ftse off 1.5%.

>> we've been talking about space this morning and for you star gazers out there you were treated to a rare astronomical phenomenon last night. the moon was close to the earth. that supermoon and lunar eclipse could be seen in european, africa, south america and the middle east. it's the first time it made an appearance like this since 1982 and won't happen again until year 2033. the blood moon lasted for about one hour and 12 minutes. so if you were sleeping, even so briefly you missed it like i did. i woke up at 12:15. didn't get to see anything. >> other stories, investors will be talking about today. alcoa splitting into two publicly traded companies. one will deal with upstream activities and will retain alcoa name. the other is called a value add company and will be named

sometime in 2016. alcoa's ceo klaus kleinfeld will be on to discuss the news. glencore has had the largest drop in one day. take a look. that stock down another 23% today coming in today it was down about 60% in a couple of months time. that story continues and one that we'll continue to follow. meantime german prosecutors reportedly launched an investigation into former volkswagen ceo. that investigation said to center around volkswagen software designed to defeat u.s. emission testing. he resigned last week. we had a busy morning break out data ahead of the bottom hour we'll get august data on personal income and consumer spending. then at 10:00 eastern time we get the latest own pending home sales. >> president obama and russian

president vladimir putin will meet face to face for the first time in almost a year today amid increasing russian influence in the middle east. putin has been ramping up voflt in syria. iraq announced it will share intelligence and security information with russia, syria and iran in an effort combat isis. both presidents will be speaking this morning at the united nations general assembly. putin's remarks will follow president obama's address which takes place at 10:30 eastern this morning. both sides will sit down together to talk about the middle east and ukraine. >> who will replace bone. ben carson gaining ground on donald trump. >> reporter: there are two questions in the wake of john boehner vacating the speaker's office which will happen at the end of october. one is who will replace him and the second is what will happen in those intervening weeks before he leaves? the first one is less of a mystery. kevin mccarthy who is currently

the majority leader is highly likely to succeed john boehner as the speaker. he's been rounding up support. members i talked to said they have little doubt that he's going to replace john boehner. the real question is what happens to the standoff over shutting down government, over the debt limit, over the ohio bill, over the future of the xm bank. bone has given some hints including yesterday on "face the nation" he might be able to get some of those things through with democratic votes before he walks out the door. >> i'm going to make the same decisions the same way i have over the last four and a half years, to make sure that we're passing conservative legislation, that's good for the country. so, i expect that might have more cooperation from some around town to try to get as much finished as possible. i don't want to leave my successor a dirty barn.

i want to clean up the barn before the next person gets. >> reporter: the challenge when you try to clean up the barn you take pot shots on the presidential campaign tram because people like ted cruz are tar gerting the leadership of the congress and saying they are not being conservative enough. you'll see in the nbc/wall street journal poll which just came out over the weekend those outside arguments are penetrating better than the establishment candidates. look at these numbers. donald trump is still ahead at 21%. but he's in a virtual tie with ben carson who is at 20. you go down there, you got carly fiorina and marco rub jobs jeb bush comes after that, john kasich and ted cruz. so it's a tough road at the moment for some of the more traditional candidates like jeb bush who we expected to be front-runner but now that we get into the fall we're going to get to the serious point both of the legislating in washington as well as the voter evaluations on the campaign trail. >> john, real quick. it was made earlier when we

talked about jeb bush and where he stands in this race if you look where things were four years ago or even before that you often have outliers still at this point. do you buy that or do you think there's a fundamental shift taking place? >> reporter: i buy it to some degree. but the difference is, you know, as eric cantor knows, mitt romney was not as low, never as low as jeb bush is right now in the race. so, yes, there were moments when herman cain, newt gingrich rose to the top of the list, even michele bachmann for a certain period of time. but you didn't have a gap between those candidates doing well and mitt romney. he wasn't down in single digits and that's concern of jeb bush. he has $100 million in his super p.a.c.. the more he can make people aware of i had conservative record in florida he can make

those numbers creep up. but this is unchartered territory. >> john, thank you. john harwood. joining us on set is virginia senator mark warner and senator, thank you very much for being here. >> thanks for having me. >> up look at everything that's happened over the last three days and it's enough to make your head spin. >> i do feel bad after that wonderful tranquillity segment you had before the 8:00 hour and now we'll talk about the budget. >> things get more boisterous and more contankerous. you're more likely to get a budget deal in the short term? >> speaker boehner was somebody who actually was willing to try to do the grand bargain, to try to do a variation on the simpson-bowles deal a few years ago. something i worked on with the gang of six that if we had done we could have had a lot of these problems in the rear view mirror. him stepping aside will get us

through the october 1 potential shutdown. and that's great. but before we say hallelujah, all we bought is 75 days before the next potential cliff comes up in early december where we not only have once again the question of the budget, the debt ceiling, a ohio bill that's still unfunded and still argues for the fact that both sides have to be willing, i believe, to go back to the two kind of driving forces. we got to go back to the tax code, entitlement system. we got to actually the worst of both worlds. we got the most complicated tax system in the world yet out of the 34 ocd countries we're 32nd in terms of total revenue raised per gdp and that's just federal, state and local combined. we have the worst particularly on the revenue side >> you're a democrat willing to work across the side. compromise has become a dirty word in washington. what's going on? >> i do think there's more folks

in both parties who are willing to do the right thing, but what extremes on both sides sometimes come in and chop your legs off. it's been particularly difficult on the republican side recently when you got some of these candidates. again, i hope, i think our country does better when both parts are more reasonable and we fight over the middle. i hope most republican primary voters will as iowa and new hampshire gets closer will get more serious and some of these outliers, these carnival-type candidates will fade off the screen. >> are the fringes, though, of both parties growing louder and louder to the point where the contention is only going to get worse? >> absolutely. we've clearly seen the fringe on the republican party and that dominate -- >> i said both parties. >> i would agree there's a crowd on the democratic side who says oh, my gosh look how successful the republicans have been with the no new tax and you're seeing

that on the democratic side. there's enough of us who want to get something done. in many ways what's driven the rise of some of these nontraditional candidates on the right have been the failure of actually getting things done and the only way that's going to happen is if we can find some common ground. >> is joe biden coming? what do you think. >> you got as good a guess as i do. >> it looks from the polling if he comes he hurts hillary more than anybody else. >> it will scramble the race. i'm supporting hillary. i think it is hard to predict on either side. >> do you feel as confident in hillary today as you did three, four months ago? >> the one thing i found both with bill clinton and hillary clinton, never write them off. these are both people who know how to navigate the political shoals and she's been laying out serious proposals. at some point the american public on both sides will turn to whose got proposals that will

work not simply the claim you got the most fantastic advisers around. >> does the e-mail server issue, do anything to your trust in her or to her judgment? >> i think the sooner she can get all of that information out -- >> no, no. for you. you look at her and what happened you say i trust her less, i have questions about her judgment in any different way. >> i think the sooner and quicker she gets those e-mails out the better, the quicker she can get it behind her. >> very quickly we've seen the fed decide not to raise interest rates in the latest round when you start thinking about a potential government shutdown you said is a real possibility at this point. do you think that keeps the fed at bay? >> i don't know. i think we'll get a little bit more time. but ultimately the fed will have to raise rates. remember one thing we've not had any kind of debt and deficit conversations for two years, we had kind of a time-out. but the idea this has gone away we're now north of $18 trillion

in debt. when interest rates go up 100 basis points that adds on an annual basis $120 billion in additional interest payments. that's more than the whole department of homeland security, whole department of education. until we can wrestle these fiscal issues to the ground, until we can get tax reform and entitlement rear form i think we'll continue this revolving problem that never goes away. >> senator, i want to thank you very much for your time. been a pleasure seeing you today. >> a big week for the markets as we get ready for the september jobs report. could the numbers sway the rate debate? we discuss that after the break. later growth of mobile advertising. jason spero is vice president of google's solutions. we'll discuss that company's approach to mobile ads and whatliswhat what lies ahead. "squawk" after this.

because we're changing. big things. small things. spur of the moment things. changes you'll notice. wherever you are in the world. sheraton.

welcome back to "squawk box" this morning opinion here's the

headlines that hour. two pieces of merger news going on. energy transfer partners is buying williams companies for $37.7 billion in cash and stock and assumed debt. ovals williams at $43.50 a share. williams closed on friday at 41.60. it's terminated its previous merger agreement with williams partner lp. halliburton and hughes offered up additional investment divestitures. regulators have expressed competitive concerns. whole foods cutting 1500 jobs or 1.6% of its workforce. process will take place over the next eight weeks. some will occur through attrition. >> markets are patiently waiting a move from the fed where should you be putting your money? ceo and cio, good to have you

here. are stocks going down a whole lot more or what? >> it's difficult to make a short term call on where the market is going. >> does it feel like we got another 5 force go. retest the lows or what? >> our philosophy is to try to ignore the noise, and be good long term investors. we basically say if your time horizon is less than five years you have no business being in the market. psychology in the market has never changed, right. you hear all the various people saying boy, just another 10% and i'm in the market and then you watch the behavior and, of course, no one jumps back in. >> so if i am a ten plus year investor which qualifies me as a long term investor i would hope should i be buying things that are attractive today? >> here's some things that look very attractive. not all buy backs are created equal. we did a study and looked at low

conviction buy backs which were 5% or less and then we looked at high conviction buy backs which were in excess of 5%. the differences were really staggering. the return between 1987 and 2014 for low conviction buy backs was about 12.1%. not bad because all large stocks are about 11.1%. when you look at the high conviction buy backs those exceeding 5% there you were seeing 15.9% annualized return. another key element is basically they were buying those high conviction buy back stocks, buying those stocks when they were dirt cheap. that's very, very important because it shows that they are buying those stocks for a very different reason. interestingly enough 70% of all buy backs are low conviction buy backs. >> you mentioned some of the stocks you like, northrup

grumman, travellers, coca-cola enterprises for those who are following. let me ask you sort of a broader question about where, where you think the investors would be best putting their money in the years ahead? whether you think it's growth that's going to don't lead as it has, or if value comes back into favor? >> i definitely believe that value will come back into favor. if you look at the very long term results to say the schizophren french pharma value versus french pharma growth, value trumps growth and significantly. >> do you feel we're in the process resetting where alllocation should be >> valuation is the be all and end all of doing well in the market. if you're paying hundred times

value for a stock everything has to go right. if anything goes wrong that stock goes to the cellar. what we found -- someone wrote a column never buy expensive stocks ever. essentially we look at those as lottery type stocks. you can do very well, right? when you look at the spread those that do extremely well, do really, really well. but when you look at the average return to those very expensive stocks what you see it's negative. >> what does expense civilian mean? pe ratios versus the market? >> we look at a value composite because one of the things we learned in our research is that factors come in and out of favor, right? sometimes pe is the one that's really driving the bus, other times it's even to enterprise value other times cash flow to enterprise value. so we look at come possible spo.

what we found looking at them together we create a value composite that means any other factor. >> so, if you're managing my money and i say to you, you know, i'm worried there's going to be a recession. okay. that's one of the warning signs. i look at the s&p and i say okay, some technical things are looking pretty ominous and when they've looked like this in the past it's been a forecast of a bear market. i got the money and investing section. do you think there's a potential of a bear market or no? >> i don't really think we're in for another 20% plus bear market. i think people freak out when they get corrections of 10% and, you know, they set their hair on fire and start running around and selling. ours is the only profession when we mark things down people rush their goods back to the store and ask for a refund. essentially human psychology

plays such an important part in investment psychology. we had investors who have, you know, maintained the long term outlook, they can totally understand it and then we get a 10% correction and they start freaking out. so, i used to say that the four horsemen of the apocalypse is fear, greed, hope and ignorance. fear, greed and hope wiped out more portfolio value than any bear market. >> we have a tale of two markets. you have a major average that's down 10% but i that have underlying stocks within that average that are down 20%, 30%, 40%. so there's a bear market in a very large number of stocks. why shouldn't i pay more attention to that? >> what we would suggest you do is apply these various metrics that we work with and of those stocks that are down 20%, 30%, 40%, find the ones that show great potential, right?

so, for example, if you have a stock that's down 40%, but it's cheaper than 99% of the stocks in its cohort and has good earnings quality and importantly something like high shareholder yield our market leaders value portfolio searches for those type of stocks then you would go in and buy that stock. far from being fearful of the idea okay the stock is down 40%. if you can fine it has the correct characteristics that over time have done very, very well, it's a great time to be purchasing that stock. >> that's the last word. jim, good to talk to you. when we return, private aviation company wheels up announcing a new round of funding. it's different round than you might think this time. we'll talk about it. turning their planes pink for a very good cause. the founder and ceo will join us to discuss how he's disrupting the way the business community

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coming up when we return we expect iphone sales from over the weekend. we'll get to those numbers. breaking news on the econ front.

and kenny dichter is here and funding on private planes. dow looks like it will open off 120 points. s&p 500 off 15.5 points. we're back in a moment.

welcome back. we're just seconds away from personal intom and spending numbers. rick santelli standing by at the cme in chicago. rick, deliver the numbers, please. >> reporter: for august personal income rose .3 of 1%. darn close to expectations. up .4 on spending. that exceeds expectations. if we look in the rear view myrrh positive revisions of .1 on both from the income originally .4 now up half of 1%. spending for last month originally released .3 now .4. let's go through august internals, real personal spending was up .3. month to month inflater unchanged. year-on-year up .3. close to expectations.

personal consumption expenditure on the core year-over-year up 1.3. .1 hotter than our last look. how are the markets responding? we actually see one basis point higher ten year yield, so the market at least looking mostly favorably at this data. even though we're still almost triple digits. we were down 97 dow futures, we're down one and two-thirds on the dax. we introduced buy treasuries when the equities sustained weakness mode. and lots of data points this week. >> rick santelli, thank you so much. >> we do have other numbers we should talk about. apple would be announcing its numbers over the weekend. in terms much its sales of new iphones, iphone the 6s, iphone

6s. selling 13 million new iphones. that they say is a new record that's of course just three days after launch. iphones have not been sold every where. they will be available in 40 additional countries beginning on friday october 9th and we'll try to give you some context and more analysis of what those numbers mean in just a little bit later in the show. >> i don't know what the estimate was, but a record i guess by any amount is supposedly pretty good. without the context as you say of actual estimates hard to know where they stand. all right. in the meantime, top tech titans will convene to roll out their latest marketing tools and expand on their plans to month he -- monetize their programs. google will be there.

what are these two things you rolled out? >> everything as you said earlier with the iphone lead is in about mobile. and we're launching two things to help customers to engage with their customers. first customer match. idea is not all your customers are equal given your segment i'm a big virgin america customer. they want to market to me differently than the masses. second is universal app campaigns which cnbc has an app. we make it insanely simple to give us a link to their app. if you have a market, put that in front of customers. >> let's ask about mobile advertising. i read something that was somewhat startling given the kind of business we're in. first two nights of fall premier week tv usage between 18 and 49-year-olds down 18%, millennials down 20%.

dollars committed upfront down. is that money going from tv to mobile or just companies are spending less on advertising now because they are worried about the global economic picture? >> i don't know the denominator on the overall spend. what i do know -- >> i'm sorry i ask the question because it's easy to say oh, my god, tv once again -- you hear the call every week that tv is dead. >> growth has been astounding both because consumers are on them all time. we reach for these devices. we're doing increasingly commercial things with that and marketers found a lot of success both being able to enjaeg an audience but to get them to do commercial things, make a transaction, move forward with some research on that. that's a lot what everybody is talking about this week. >> what about the idea -- we're just talking about the iphone and the success that apple continues to have. something that would directly impact your business or these ad

blockers on mobile which apple has embraced. they don't have as much to lose clearly as somebody like you do. so how do you react to that news and what it means to google which controls a much larger piece of the ad pie than apple? >> ad blockers are a symptom of a larger customer experience. you have to understand ads fund the free internet we enjoy. i think as a "new york times" customer, in addition to my subscription those ads are important to their success. we think about the publishers. if you're delivering a great experience the customers understand users understand that's part of the web. at the same time if there's a poor experience, the ad blockers play a role for customers and users who want to come in and not see those ads. we've been up front to drive relevance. the consumer welcomes and see it's something for tloubs. >> do you think apple is doing a disservice to the customer? >> apple is doing something for

people who choose not to see the ads on the web. what you'll see us reach a new equilibrium with publishers and users who want to use this as free. customers say you block ads on "new york times" now the "new york times" will cost you something. we're working on driving great ads. if we're driving great ads and others aren't those are ads people want to see. >> jason, we have to leave it. wish ewell. >> thanks very much. >> jason spero, google vice president performance. google. >> let's get back to the apple numbers that we just talked about. josh lipton has more contwerkt the numbers. >> apple giving us our first look and have 6s and 6s plus. opening weekend it sold more than 13 million of these new models. new models will be available in 40 additional countries beginning october 9th. they mentioned italy, russia,

mexico, taiwan, these new phones will be available in 130 countries by tend of the year. tim cook in a statement saying sales for the iphone 6s and 6s plus has been phenomenal. so just some context in that 13 million. i talked to piper as gene munster he was looking for around 12 to 13 million. there's some differences including china. china was included in the launch. last year it wasn't there until october. the big question for investors do you think that the 6s and 6s plus and price cuts will boost shipments in the quarters ahead. you talked to. skeptics that point out tough comps, slowing cell phone market. others say on apple's last earning call they said 30% of users notified the new models. >> what about -- we've had sprint on others who have come

out with these forever sprint one is the forever plan but some have cut the price and/or done some kind of leasing model that's different. is that going to drive sales? >> the carriers -- first of all that's a great point. carriers do everything they can to incentivize. that new financing plan, tim cook is offering your phone for 32 a month. that increases more competition among the carriers. >> one thing i never understood, apple is offering it for 32, sprint is offering it for 15. >> you're getting this phone for 32 but you still have to pick your service. for the carriers they aren't making money off the hand set. their nightmare if tim cook decides not to offer the hardware and service no indication that's happening yet. >> okay. >> josh, thank you. >> thank you. >> up next, private aviation start up wheels up joins us for

a business update and a look at the industry. ceo kenny dichter is here. look at the futures this morning. there it is. dow futures would open, the market would open lower by 84 points with economic data this morning that investors are digesting. "squawk" will be right back. proud of you, son. ge! a manufacturer. well that's why i dug this out for you. it's your grandpappy's hammer and he would have wanted you to have it.

it meant a lot to him... yes, ge makes powerful machines. but i'll be writing the code that will allow those machines to share information with each other. i'll be changing the way the world works. (interrupting) you can't pick it up, can you? go ahead. he can't lift the hammer. it's okay though! you're going to change the world.

welcome back to "squawk box". let's get you caught up on some stocks to watch. atmel looks to be play. semiconductor is putting together a bid for the chip maker. atmel agreed to sell it self. the stock super6%. also fiat chrysler tentative four year labor agreement with turn aw is running into strong opposition from members at least judging from early advocating. final results isn't expected to come until middle of next week. royal dutch shell will stop exploring offshore alaska after failing to find enough oil in the region. the company could take a write down of $4.1 billion. >> wheels up. the two year private aviation company announcing a new financing. getting $115 from t. rowe price, fidelity and nea. here to walk us through the deal

and tell us how the money will fuel expansion, kenny dichter. congratulations. >> thanks. >> nothing to half a billion. >> from a napkin, powerpoint. >> great story. to me what's interesting you have public investors now. >> ah-ha. >> who are investing in a private business. we've seen this with other unicorn -- usually technology places. this is old school business. >> ah-ha. the team at t. rowe price immediately connected with our management team on the vision to membership model, amazon prime, costco. we have an initiation fee and recurring revenue stream. if you start doing the math on 20,000 members you have a business that's robust. >> in term of the business itself how much of this is taking market share from the net jets the world, how much of it is taking from people who otherwise would buy a plane outright and the competition or

is this a new market that you're building. >> we're creating a new market. again i believe with anybody in fractional we can be a great supplement to their business. i got to believe that a big part of henry's thinking, fidelity and nea we have an exclusive supply of an airplane that's a flying suv of the world. >> i emailed with henry over the weekend. one thing he indicates he likes your plan to offer member to member ride sharing. so uber has its uber pool where you share with somebody. i always thought if you have a private plane the whole point is not to share. >> we talk about millennials and people behaving differently. i think the idea of being in a setting, if you and i, andrew, going down to a redskins game to see scott and company nothing wrong with us putting our flight up on the app and have other

members join. if that flight was $4,000 now it's 2,000. social aviation is coming. in terms of market share every person should have wheels up as a supplement to their existing program. i think folks with whole plane, planes are down six, eight weeks a year, we're a perfect stand in slug. 35% of our business has come from people that travel commercially. big piece of our business is coming from folks that have not been passengers on private planes. >> planes down what does that mean? i fly commercial. >> when planes are down, typical airplane if you own i want it has maintenance for six or eight weeks a year. >> that's a lot. >> you need to be able to pick up a phone to wheels up. >> you guys have been a marketing machine. incredibly successful year between kentucky derby, some pga and elsewhere. as your valuation goes up will you be as aggressive from a

marketing standpoint or you do not need to do as much as your valuation grow? >> i think, scott, it's a good question. we're just getting started. we had a lot of fortunate things happen to us this year. thank you american pharaoh, serena williams, ricky fowler. winners fly wheels up. we associate with folks that are winning. when they get the logo on their leg or chest or hat they win. we'll put the pedal down and continue the marketing because it's just straight return on investment. if we spend a dollar and get $1.50 or $2 back we'll spend that. >> how many customers do you have? >> we are roughly 1700. 2,200 year end. next year we have a shot to be 3,000, 3,500. i said on this show a while ago, in less than five years, because i said five years, last time i was on i think we'll be the number one private aviation. i know we'll be the number one

private aviation in the world. >> this business works in good times. can't be a straight line. this business we've seen -- we've seen when these companies work when net jets work because the economy and particularly the stock market is working. now we're moving sideways and some people including karl icahn think we're moving down. >> we're in position a. we're the last stop before you go to laguardia, lax. we're less expensive. i don't want to say -- bring on a recession it will shake everybody out. we'll do with the king f 380. >> is the plan ultimately to go public? do they follow on? when those guys get in what does that mean >> we looked at henry and spoke to fidelity and nea. our plan is to go public. in our membership model, the

membership model gives you that daughter built of earnings. box economics on the airplanes can come and go. you can do the quick math on having 20,000 people subscribe and, again, i think that's really where we are different than everybody else in the market and why two years from now, two and a half years from now we'll be talking about a public offering. >> your planes will look different. they are pink. >> breast cancer awareness. everybody does a great job. i look at the nfl. you can't miss the pink. october is breast cancer awareness month. we're doing our part. we painted a plane pink. we took the plane this month and we'll do a fly-a-thon style. we're going to have our members and anybody else that goes wheelsup.com and pledge per hour. this airplane should fly 600, 700 revenue hours and we should

be able to raise over $1 million. >> thank you. >> thank you. >> when we come back this morning, jim cramer on the corporate stories of the morning and what investors need to watch this week on wall street. take a look at the futures. they have been under pressure but off the worse levels of the morning. futures are down but down 92. sapp off by 12. stick around, we'll be right back.

can it make a dentist appointment when my teeth are ready? ♪ can it tell the doctor how long you have to wear this thing? ♪ can it tell the flight attendant to please not wake me this time? ♪ the answer is yes, it can. so, the question your customers are really asking is, can your business deliver?

welcome back. among today's top stories danger ahead. the warning from billionaire investor karl icahn in a new video set for release tomorrow. in that video produced by mr. icahn himself the outspoken activist said low interest rates have caused bubbles in art, real estate and high yield bonds and the fallout could be dramatic. >> it's like giving somebody medicine and this medicine is being given and given and we don't know what will happen. we don't know how bad ten of

this will be. we know when you did it a few years ago it cause ad catastrophe. it caused '08. where do you draw the line here? >> in separate telephone interview surrounding the video's release he told me he's quote more hedged now than i've been in years and believes stocks could go down a lot more. the fed may have backed itself in a concern. they should have raised rates six months ago. he says it's more difficult to do that now because of concerns over china and the emerging markets. icahn is saying donald trump is the outsider washington needs. the video's full release is tomorrow morning. jaime cramer joining us. jim you want to opine on what mr. icahn is saying. he's saying he's more hedged than in years and stocks could go down a lot more. >> i don't think he's wrong. i haven't liked this market for some time. when you spoke to jim, we see

glencore with $30 billion in debt who knows how big this company is. these are just black holes. i do want to say, enough of the fed. these are issues that would be happening if the fed had rates at 1.5. i think we spend way too much time on the fed and not nearly enough on the declining fundamentals. declining fundamentals quickly in the broader international industrials are rolling over much faster than people realize. >> what do you do, jim, though if you say you think we're in a bear market, what is the investor to think this morning as they listen to you and the guys talk down there? >> what we've been saying this is a general mills market. you get some yield and some slow growth. you'll be okay provided it's domestic and not that much exposure to a strong dollar. i do think -- look i don't think we have systemic risk.

there are some systemic holes that tend not to be in the united states. glencore is not a u.s. company. volkswagen is definitely a questionable organization right now. petroba brazil. we can visit the lows from august 24th without much of a problem. you have some cash. should our viewers be hedged. our viewers can raise cash. the hedge funds are already pretty well short. >> jim we look forward to hearing the conversation this morning. got some animated talk -- i know you'll talk more about this glencore thing. down 76% in two months. >> it has the feelings of some investment banks we used to talk about. >> looking forward to a great show. >> still to come today i'll be sitting down with president bill clinton in a special conversation coming up live right here on cnbc at 11:50. on cnbc check out the live

stream that starts. cisco's former ceo john chambers. stay tune, "squawk box" will be right back. aflaaac. aaaa-flaaaac. someone's sandbagging. i'd be tired too. he paid my claim in one day when i got hurt. one day? serious hustle. serious duck. in just one day, we process, approve and pay. one day pay, only from aflac. ah!

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♪ stocks to watch this morning let's tell you what's going on. j.c. penney upgraded to buy. they had a meeting with the new ceo. facebook introducing new advertising products aimed at television advertisers. news coming ahead of new york city's advertising week event. facebook announcing it has added half a million active advertisers since february. sprint will not be participating in a scheduled auction of government air waves set for early next year. it has adequate spectrum for its future needs. and comcast acquiring a majority stake in universal studios japan. doing that for $1.5 billion. move is part of the company's global theme park strategy. just another part of what they

are doing. so there we have it. >> scott, thank you for being we're us. >> great fun with sir richard branson and you guys. >> we'll see you this week. >> see me at noon today. >> we'll see you because you have president clinton interview. look forward to that. >> we'll see you. time for "squawk on the street". ♪ good monday morning. welcome to "squawk on the street". i'm carl quintanilla with jim cramer and david faber. multiple headlines on m and a, more fears of a hard landing in china, glencore, putin at the u.n., icahn with a market warning. futures are lower. bonds, dudley is out saying he still sees a rate hike this year. oil is lower amid a lot of news from companies with energy and